ECB Backs Simplified Regulations, Warns Against Deregulation

The European Central Bank (ECB) has endorsed simplifying European bank regulation while emphasizing that this should not lead to deregulation.

ECB executive board member Frank Elderson stated in an interview published on September 8 that the fragmented banking market, rather than prudential requirements, is one of the biggest obstacles to competitiveness in Europe.

This means that simplification efforts should focus on streamlining existing regulations rather than weakening them, according to Elderson's view.